Section 270A Penalty Invalid for Loss Reclassification from Business to Speculative

INU Exports Private Limited Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal, Mumbai Bench deleted a ₹15.19 crore penalty levied u/s 270A. The issue was straightforward. The AO treated a business loss as speculative loss and proceeded to levy penalty for alleged under-reporting of income. The Tribunal held that: The loss was fully disclosed in the return There was no concealment or furnishing of inaccurate particulars The AO merely changed the head under which the loss was classified A change in classification, by itself, does not attract penalty. Reiterating settled law, the Bench...